Universal credit loan: an emergency loan of £ 1,000 could be yours in time for Christmas
Christmas is approaching, bringing with it financial uncertainties about how to get through the season. But respite might be available for those who qualify for an interest-free loan
Christmas is just around the corner, causing a lot of worries for many families about how they will manage the holiday season financially.
But a little-known program for universal credit applicants could alleviate some money problems, with interest-free loans of up to £ 1,000 for those waiting for their first payment to be made.
The loan is also available to those who need more money due to a sudden change in circumstances, such as having a baby, MyLondon Reports.
Applicants for universal credit face a tougher time than ever after the temporary increase given during the lockdown was ripped off in October, just as increases in energy and food costs begin to eat into the pockets of consumers. people.
Those who apply for universal credit face a five-week wait for money, which can leave some struggling to find the money to pay their bills.
Prepayment is currently offered through the Department of Work and Pensions (DWP), which will allow applicants to borrow money and then repay it in installments.
The loans are interest free – and the amount applicants can get depends on the amount of universal credit they are entitled to.
The maximum amount applicants can borrow is currently £ 1,000. Claimants can claim up to 100 percent of the amount, but they can also claim less.
The borrowed money should be with the applicants within three days of submitting the application and will have to keep the money for five weeks until the UC payment is made.
The money deducted from your next UC payment can be calculated by dividing the total cost by 24 (for example, if you borrowed £ 1,000, £ 41.67 will come out of your account each month.
Applicants who get a job and stop claiming UC will still have to repay the loan.
Those who wish to make a complaint should apply through JobCentre 0800 328 5644. Applications made due to changed circumstances should be made by phone.
Applicants will need to explain why they need the loan – and won’t get the payment automatically.
They will also need to be able to prove that they can repay the money and agree on a rate at which the loan will be repaid.
Those who have difficulty repaying an advance will be able to withhold a repayment for up to three months (one month for changed circumstances).
Candidates are advised to contact their work coach or request additional assistance online.